Webb County, Texas, and Two Teamsters Health & Welfare Funds Seek Federal Court Injunction for Top Three Pharmacy Benefit Managers To Take Immediate Steps to Address Country’s Opioid Crisis

Sept. 18, 2018, CLEVELAND – A small county in south Texas joined by two Employer-Teamsters Locals filed a joint motion in federal court on Friday seeking an injunction directing the nation’s three largest prescription drug plan providers, known as Pharmacy Benefit Managers (PBM), to take immediate steps that could dramatically reduce the escalating inappropriate distribution and abuse of prescription opioids.

The motion filed by Webb County, Texas, Employer-Teamsters Local Nos. 175 & 505 Health & Welfare Fund, and Employer Teamsters Local Nos. 175 & 505 Retiree Health & Welfare Fund claims that Caremark, Express Scripts, and OptumRx, which combined control nearly 90 percent of America’s drug benefits, have mechanisms readily available to impact the ease with which opioids and opioid overdose and addiction treatments are dispensed into communities.

PBMs are the gatekeepers to prescription drugs. They administer prescription drug plans for more than 266 million Americans and create formularies that determine which drugs are covered by insurance plans, and negotiate the incentive discounts afforded consumers for certain prescription drugs, including addictive opioids.

Webb County was the first plaintiff in the country to hold PBMs accountable for the man-made national opioid crisis. Its initial case, along with more than 950 similar cases against opioid manufacturers, distributors, pharmacy chains, and others has been consolidated in multi-district litigation, or MDL, before Federal Judge Dan Polster, the same judge who must now consider the immediate injunction request. Polster already has made clear that the Court’s priority is to abate the opioid epidemic.

According to Joanne Cicala, lead counsel for Webb County, PBMs have their fingerprints on every opioid prescription that is filled. “PBMs have admitted that nearly 50 percent of prescriptions for first-time opioid users are not compliant with federal guidance from the Centers for Disease Control and Prevention (CDC),” she said.

“Webb County is trying to draw the Court’s attention to the fact that a mechanism to address the urgency of this crises has been hiding in plain sight,” Cicala said. “That mechanism involves simple edits to current PBM formularies that will impose restrictions on opioids consistent with existing CDC guidelines and enhance access to alternative pain relief and treatment medications,” she said.

According to the joint motion, although PBMs make claims that they are in a unique position to help abate the opioid epidemic, their new opioid management programs still are not compliant with the CDC Guideline they also claim to support. If approved, the injunction will require the Big Three PBMs to take a constructive and necessary step toward an immediate and meaningful impact on the improper flow of opioids to the public, Cicala said.

Cyrus Mehri, lead counsel for the Employer-Teamsters Local Nos. 175 & 505 Health & Welfare Fund, and Employer Teamsters Local Nos. 175 & 505 Retiree Health & Welfare Fund said, “When this proceeding began in January, the Court made clear that the parties need to take action to abate this crisis this year. The PBMs have critical tools at their disposal to make a difference in people’s lives. We cannot wait any longer,” he said.

Drug overdoses are now the leading cause of death for Americans under the age of 50, and 134 Americans are dying on a daily basis because of the opioid epidemic. The number of Americans who died of drug overdose in 2017 was roughly equal the number of Americans who died in the Vietnam, Iraq, and Afghanistan wars combined.1

According to the CDC, the costs of healthcare, lost productivity, addiction treatment, and criminal justice involvement due to opioid misuse alone is $78.5 billion a year.2

Webb County is represented by The Cicala Law Firm PLLC, based in Dripping Springs Texas. Sanford Heisler Sharp LLC, with offices in Washington DC, Nashville and New York, is co-counsel to The Cicala Law Firm.